File #2511: "2018_Book_FromBilateralArbitralTribunals.pdf"
Text
1|Preface|6
1|Contents|7
1|List of Abbreviations|12
1|Chapter 1: Executive Summary|14
2|1.1 Preliminary Considerations Regarding the Establishment of the MIC/MIAM|15
2|1.2 Organisational Structure|16
2|1.3 Procedure of the MIC|17
2|1.4 Applicable Law of the MIC|18
2|1.5 Legal Remedies and Enforcement of MIC Decisions|19
2|1.6 Establishment of a Standalone Multilateral Investment Appellate Mechanism (MIAM)|19
2|References|19
1|Chapter 2: Introduction|21
2|References|24
1|Chapter 3: Targets for the Reorganisation of the Investment Protection Regime|26
2|3.1 Positive Effects of a New Approach|26
3|3.1.1 Consistency of Decisions|27
3|3.1.2 Greater Legitimacy|28
3|3.1.3 Independence and Neutrality of Judges|28
3|3.1.4 Lack of a Control Mechanism|29
3|3.1.5 Cost Efficiency|29
3|3.1.6 Access for SMEs|30
3|3.1.7 Transparency|30
3|3.1.8 Time Efficiency|31
2|3.2 Advantages of the Two-Tiered MIC Option|31
2|References|33
1|Chapter 4: Design and Implementation of a Two-Tiered MIC|35
2|4.1 Institutional and Procedural Design|36
3|4.1.1 Members of an MIC|36
3|4.1.2 Plenary Body|37
4|4.1.2.1 Appointment of Judges Through the Plenary Body|39
5|Number of MIC Judges|39
5|Nomination of Candidate Judges|39
5|Screening Committee|42
5|Diversity Among Judges|42
4|4.1.2.2 Adoption of Specific Secondary Rules|46
5|Adoption of Internal Procedural Rules, Budget etc.|46
5|Interpretation, Including Subsequent/Authentic Interpretation|46
5|Subsequent Increase of the Number of Judges|47
4|4.1.2.3 Requirement of Majority for Decision Making|47
4|4.1.2.4 Transparency in Proceedings of the Plenary Body|48
4|4.1.2.5 Seat of the Plenary Body and Frequency of Meetings|48
3|4.1.3 Judges at the MIC|48
4|4.1.3.1 Full- or Part-Time Judges|49
4|4.1.3.2 Qualification|50
4|4.1.3.3 Independence|51
4|4.1.3.4 Ethics|52
4|4.1.3.5 Availability|55
4|4.1.3.6 Remuneration|55
4|4.1.3.7 Oath of Office|57
4|4.1.3.8 Immunity|57
4|4.1.3.9 Parallel Engagements|57
4|4.1.3.10 Appointment/Election by the Parties to the Agreement|59
4|4.1.3.11 Duration of Appointment and Rotating Reappointment|59
4|4.1.3.12 Decisions on Instances of Bias by Judges|60
4|4.1.3.13 Termination of the Appointment|61
4|4.1.3.14 Removal from Office|61
3|4.1.4 President of the Court and Vice President of the Court|62
3|4.1.5 Plenary Decisions, Chambers and Single Judges|62
3|4.1.6 Appellate Mechanism|65
3|4.1.7 Secretariat|65
3|4.1.8 Advisory Centre|67
2|4.2 The Appeals Procedure Before the Two-Tiered MIC|67
3|4.2.1 Jurisdiction of the MIC|68
4|4.2.1.1 Membership of the Respondent State and of the Home State of the Investor in the MIC|68
4|4.2.1.2 (Written) Consent to the Jurisdiction of the MIC|70
4|4.2.1.3 Jurisdiction Ratione Personae|72
4|4.2.1.4 Jurisdiction Ratione Materiae|73
4|4.2.1.5 Jurisdiction Ratione Temporis|74
4|4.2.1.6 Avoidance of Abuse of Process and Negative Admissibility Requirements|74
5|Dismissal of Inadmissible Claims and Claims Without Merit|75
5|No Jurisdiction over Political State-Owned Enterprises and Sovereign Wealth Funds|76
5|Avoiding Treaty Shopping|77
5|Denial of Benefits and Dismissal of Claims in Case of Corruption|78
3|4.2.2 Relationship of the MIC to Other Courts and Arbitral Tribunals|79
3|4.2.3 The Relationship with Domestic Courts|81
3|4.2.4 The Relationship with Inter-State (Arbitration) Dispute Settlement|82
3|4.2.5 General Procedure before the MIC|83
4|4.2.5.1 Compulsory Consultations?|84
4|4.2.5.2 First Instance Procedure|86
5|The General Procedure|86
5|Proceedings upon Application, Submission of a Claim and the Statement of Claim|88
5|Allocation of a Claim to a Chamber|89
5|Examination of Jurisdiction, Inadmissibility or Manifest Ill-Foundedness|89
5|Time Limits for the Submission of a Claim|90
5|Respondent|90
5|Determination of the Appropriate Respondent When International Organisations Enjoying Autonomous Legislative Powers and Their ...|91
5|Right to Bring a Claim and Subject Matter of a Claim|94
5|Right To Be Heard Before the Court|95
5|Oral Proceedings and ``Free´´ Consideration of Evidence|95
5|Court Fees|96
5|Rules on Cost Allocation Schemes, Legal Funding and Legal Aid|98
5|Non-appearance Before the MIC and Default Judgments|100
5|Intervention and Hearings of Interested Third Parties|100
5|Experts|101
5|Withdrawal of a Claim|101
5|Statement of Reasons and Minority Opinions|102
5|Interim Measures and the Protection of the Claimant´s Rights|102
5|Counterclaims|103
5|Class Action|104
5|Finality and Legal Effects of Judgment|105
5|Legal Representation before the Court|105
4|4.2.5.3 Second Instance Procedure/Appeal|105
5|The General Procedure|107
5|Duration of Proceedings|109
5|Scope of Review and Investigative Competence|110
5|Chamber or Plenary Decisions|111
5|Second Instance Judgments as Precedent?|112
3|4.2.6 Consolidation of Pending Procedures at the MIC|112
2|References|113
1|Chapter 5: Applicable Law|118
2|5.1 Applicable Substantive Law|120
3|5.1.1 EU Law as Applicable Substantive Law?|122
3|5.1.2 Uniform Interpretation of Standards of Protection|124
4|5.1.2.1 Permanency of the Treaty Interpreters at the MIC|125
4|5.1.2.2 Harmonising Interpretation Mandate|127
3|5.1.3 Ensuring a Neutral and Objective Interpretation of Standards of Protection|128
4|5.1.3.1 Clarification and Limitation of Investment Protection Standards in Investment Agreements|128
4|5.1.3.2 Limiting the Mandate for Interpretation|131
4|5.1.3.3 Authentic Interpretation by the Parties|132
4|5.1.3.4 Composition of the MIC: Impartial and Independent Judges|133
2|5.2 Applicable Procedural Law and Procedural Principles|135
3|5.2.1 Transparency|137
3|5.2.2 Efficiency|139
3|5.2.3 Practice of Judicial Investigation and Limitation of the Subject Matter of the Dispute|143
2|References|145
1|Chapter 6: The Pronouncement of Decisions and Its Consequences|150
2|6.1 Legal Effects of Decisions of International Dispute Settlement Bodies|150
2|6.2 Effects of Decisions of Investment Arbitral Tribunals|152
2|References|155
1|Chapter 7: Recognition and Enforcement of Decisions|156
2|7.1 Decisions of the MIC as Arbitral Awards Within the Meaning of the ICSID Convention|160
2|7.2 Decisions of the MIC as Arbitral Awards Within the Meaning of the New York Convention|162
3|7.2.1 Voluntary Submission by the Parties|163
3|7.2.2 Final and Binding Dispute Resolution|165
3|7.2.3 Non-State Decision-Makers|166
3|7.2.4 Arbitrator Selection by the Parties|167
3|7.2.5 Foreign, Non-Domestic and Anational Awards|167
3|7.2.6 Litigation Between Natural or Legal Persons|170
3|7.2.7 MIC as a ``Permanent Arbitral Body´´ Under Article I Para. 2 NYC|170
3|7.2.8 Reservation on ``Commercial Matters´´ Under Article I Para. 3 NYC|171
2|7.3 Recognition and Enforcement of Decisions of the MIC|172
2|References|174
1|Chapter 8: Possibilities for the Establishment of an MIC and a Possible Connection to Existing Institutions and System Conform...|175
2|8.1 Practical Implementation of the Establishment of an MIC|175
2|8.2 Structuring the MIC as an International Organisation|177
2|8.3 Connection to Existing Institutions|179
2|8.4 Entry Into Force of the MIC Statute Only with a Minimum Number of Members|182
2|8.5 Establishment of MIC Jurisdiction by Explicit Modification of Existing and Future IIAs|183
3|8.5.1 Conclusion of New IIAs and FTAs with Investment Chapters|183
3|8.5.2 Renegotiation and Reform of Existing EU Economic Agreements|184
3|8.5.3 Inclusion of ``IIA Networks´´ of the Member States in the Establishment of MIC Jurisdiction|184
2|8.6 The MIC Statute as Opt-In Convention for the Modification of Existing IIAs|185
3|8.6.1 The Standard Case: Consensus on the Establishment of MIC Jurisdiction|186
3|8.6.2 Exceptional Cases: Jurisdiction of the MIC Even if the Home State of the Investor Is Not an MIC Member?|188
3|8.6.3 Jurisdiction of the MIC in Case of Multilateral IIAs|189
3|8.6.4 Summary of the Establishment of MIC Jurisdiction|189
2|8.7 Transitional Provisions and System Conformity of the MIC|190
2|8.8 Working Language and Language of Proceedings at the MIC|191
2|8.9 Cost Distribution in the New System|192
2|8.10 Overview of the Necessary Agreements and Secondary Instruments|193
2|References|194
1|Chapter 9: Standalone Appeal Mechanism: ``Multilateral Investment Appeals Mechanism´´ (MIAM)|196
2|9.1 Organisational Construction|196
2|9.2 General Procedure|197
2|9.3 Specific Issues|200
3|9.3.1 Duration of Proceedings|200
3|9.3.2 Scope of Examination and Investigative Jurisdiction|200
3|9.3.3 Chamber and Plenary Decisions|202
3|9.3.4 Decision on the Bias of Arbitrators in the Initial Arbitral Proceedings and MIAM|202
3|9.3.5 Precedence Created by Second-Instance Judgments?|203
2|9.4 Decisions Rendered Made by the MIAM|203
2|9.5 Enforcement of MIAM Decisions|204
2|9.6 Possibilities for Setting up a MIAM|205
3|9.6.1 Establishment as a Self-Governing International Organisation|205
3|9.6.2 Necessity of a Minimum Number of Members|206
3|9.6.3 Establishment of MIAM Jurisdiction|207
4|9.6.3.1 Establishment of MIAM Jurisdiction by Explicit Amendment of Existing Treaties and Through IIAs Concluded in the Future|207
4|9.6.3.2 MIAM Statute as an Opt-In Convention to Amend Existing IIAs|208
2|9.7 Transitional Provisions and System Conformity of a MIAM|210
2|9.8 Working and Procedural Language of the MIAM|211
2|9.9 Costs of the New System|212
2|9.10 Overview of Necessary Agreements Etc.|212
2|References|213
1|Contents|7
1|List of Abbreviations|12
1|Chapter 1: Executive Summary|14
2|1.1 Preliminary Considerations Regarding the Establishment of the MIC/MIAM|15
2|1.2 Organisational Structure|16
2|1.3 Procedure of the MIC|17
2|1.4 Applicable Law of the MIC|18
2|1.5 Legal Remedies and Enforcement of MIC Decisions|19
2|1.6 Establishment of a Standalone Multilateral Investment Appellate Mechanism (MIAM)|19
2|References|19
1|Chapter 2: Introduction|21
2|References|24
1|Chapter 3: Targets for the Reorganisation of the Investment Protection Regime|26
2|3.1 Positive Effects of a New Approach|26
3|3.1.1 Consistency of Decisions|27
3|3.1.2 Greater Legitimacy|28
3|3.1.3 Independence and Neutrality of Judges|28
3|3.1.4 Lack of a Control Mechanism|29
3|3.1.5 Cost Efficiency|29
3|3.1.6 Access for SMEs|30
3|3.1.7 Transparency|30
3|3.1.8 Time Efficiency|31
2|3.2 Advantages of the Two-Tiered MIC Option|31
2|References|33
1|Chapter 4: Design and Implementation of a Two-Tiered MIC|35
2|4.1 Institutional and Procedural Design|36
3|4.1.1 Members of an MIC|36
3|4.1.2 Plenary Body|37
4|4.1.2.1 Appointment of Judges Through the Plenary Body|39
5|Number of MIC Judges|39
5|Nomination of Candidate Judges|39
5|Screening Committee|42
5|Diversity Among Judges|42
4|4.1.2.2 Adoption of Specific Secondary Rules|46
5|Adoption of Internal Procedural Rules, Budget etc.|46
5|Interpretation, Including Subsequent/Authentic Interpretation|46
5|Subsequent Increase of the Number of Judges|47
4|4.1.2.3 Requirement of Majority for Decision Making|47
4|4.1.2.4 Transparency in Proceedings of the Plenary Body|48
4|4.1.2.5 Seat of the Plenary Body and Frequency of Meetings|48
3|4.1.3 Judges at the MIC|48
4|4.1.3.1 Full- or Part-Time Judges|49
4|4.1.3.2 Qualification|50
4|4.1.3.3 Independence|51
4|4.1.3.4 Ethics|52
4|4.1.3.5 Availability|55
4|4.1.3.6 Remuneration|55
4|4.1.3.7 Oath of Office|57
4|4.1.3.8 Immunity|57
4|4.1.3.9 Parallel Engagements|57
4|4.1.3.10 Appointment/Election by the Parties to the Agreement|59
4|4.1.3.11 Duration of Appointment and Rotating Reappointment|59
4|4.1.3.12 Decisions on Instances of Bias by Judges|60
4|4.1.3.13 Termination of the Appointment|61
4|4.1.3.14 Removal from Office|61
3|4.1.4 President of the Court and Vice President of the Court|62
3|4.1.5 Plenary Decisions, Chambers and Single Judges|62
3|4.1.6 Appellate Mechanism|65
3|4.1.7 Secretariat|65
3|4.1.8 Advisory Centre|67
2|4.2 The Appeals Procedure Before the Two-Tiered MIC|67
3|4.2.1 Jurisdiction of the MIC|68
4|4.2.1.1 Membership of the Respondent State and of the Home State of the Investor in the MIC|68
4|4.2.1.2 (Written) Consent to the Jurisdiction of the MIC|70
4|4.2.1.3 Jurisdiction Ratione Personae|72
4|4.2.1.4 Jurisdiction Ratione Materiae|73
4|4.2.1.5 Jurisdiction Ratione Temporis|74
4|4.2.1.6 Avoidance of Abuse of Process and Negative Admissibility Requirements|74
5|Dismissal of Inadmissible Claims and Claims Without Merit|75
5|No Jurisdiction over Political State-Owned Enterprises and Sovereign Wealth Funds|76
5|Avoiding Treaty Shopping|77
5|Denial of Benefits and Dismissal of Claims in Case of Corruption|78
3|4.2.2 Relationship of the MIC to Other Courts and Arbitral Tribunals|79
3|4.2.3 The Relationship with Domestic Courts|81
3|4.2.4 The Relationship with Inter-State (Arbitration) Dispute Settlement|82
3|4.2.5 General Procedure before the MIC|83
4|4.2.5.1 Compulsory Consultations?|84
4|4.2.5.2 First Instance Procedure|86
5|The General Procedure|86
5|Proceedings upon Application, Submission of a Claim and the Statement of Claim|88
5|Allocation of a Claim to a Chamber|89
5|Examination of Jurisdiction, Inadmissibility or Manifest Ill-Foundedness|89
5|Time Limits for the Submission of a Claim|90
5|Respondent|90
5|Determination of the Appropriate Respondent When International Organisations Enjoying Autonomous Legislative Powers and Their ...|91
5|Right to Bring a Claim and Subject Matter of a Claim|94
5|Right To Be Heard Before the Court|95
5|Oral Proceedings and ``Free´´ Consideration of Evidence|95
5|Court Fees|96
5|Rules on Cost Allocation Schemes, Legal Funding and Legal Aid|98
5|Non-appearance Before the MIC and Default Judgments|100
5|Intervention and Hearings of Interested Third Parties|100
5|Experts|101
5|Withdrawal of a Claim|101
5|Statement of Reasons and Minority Opinions|102
5|Interim Measures and the Protection of the Claimant´s Rights|102
5|Counterclaims|103
5|Class Action|104
5|Finality and Legal Effects of Judgment|105
5|Legal Representation before the Court|105
4|4.2.5.3 Second Instance Procedure/Appeal|105
5|The General Procedure|107
5|Duration of Proceedings|109
5|Scope of Review and Investigative Competence|110
5|Chamber or Plenary Decisions|111
5|Second Instance Judgments as Precedent?|112
3|4.2.6 Consolidation of Pending Procedures at the MIC|112
2|References|113
1|Chapter 5: Applicable Law|118
2|5.1 Applicable Substantive Law|120
3|5.1.1 EU Law as Applicable Substantive Law?|122
3|5.1.2 Uniform Interpretation of Standards of Protection|124
4|5.1.2.1 Permanency of the Treaty Interpreters at the MIC|125
4|5.1.2.2 Harmonising Interpretation Mandate|127
3|5.1.3 Ensuring a Neutral and Objective Interpretation of Standards of Protection|128
4|5.1.3.1 Clarification and Limitation of Investment Protection Standards in Investment Agreements|128
4|5.1.3.2 Limiting the Mandate for Interpretation|131
4|5.1.3.3 Authentic Interpretation by the Parties|132
4|5.1.3.4 Composition of the MIC: Impartial and Independent Judges|133
2|5.2 Applicable Procedural Law and Procedural Principles|135
3|5.2.1 Transparency|137
3|5.2.2 Efficiency|139
3|5.2.3 Practice of Judicial Investigation and Limitation of the Subject Matter of the Dispute|143
2|References|145
1|Chapter 6: The Pronouncement of Decisions and Its Consequences|150
2|6.1 Legal Effects of Decisions of International Dispute Settlement Bodies|150
2|6.2 Effects of Decisions of Investment Arbitral Tribunals|152
2|References|155
1|Chapter 7: Recognition and Enforcement of Decisions|156
2|7.1 Decisions of the MIC as Arbitral Awards Within the Meaning of the ICSID Convention|160
2|7.2 Decisions of the MIC as Arbitral Awards Within the Meaning of the New York Convention|162
3|7.2.1 Voluntary Submission by the Parties|163
3|7.2.2 Final and Binding Dispute Resolution|165
3|7.2.3 Non-State Decision-Makers|166
3|7.2.4 Arbitrator Selection by the Parties|167
3|7.2.5 Foreign, Non-Domestic and Anational Awards|167
3|7.2.6 Litigation Between Natural or Legal Persons|170
3|7.2.7 MIC as a ``Permanent Arbitral Body´´ Under Article I Para. 2 NYC|170
3|7.2.8 Reservation on ``Commercial Matters´´ Under Article I Para. 3 NYC|171
2|7.3 Recognition and Enforcement of Decisions of the MIC|172
2|References|174
1|Chapter 8: Possibilities for the Establishment of an MIC and a Possible Connection to Existing Institutions and System Conform...|175
2|8.1 Practical Implementation of the Establishment of an MIC|175
2|8.2 Structuring the MIC as an International Organisation|177
2|8.3 Connection to Existing Institutions|179
2|8.4 Entry Into Force of the MIC Statute Only with a Minimum Number of Members|182
2|8.5 Establishment of MIC Jurisdiction by Explicit Modification of Existing and Future IIAs|183
3|8.5.1 Conclusion of New IIAs and FTAs with Investment Chapters|183
3|8.5.2 Renegotiation and Reform of Existing EU Economic Agreements|184
3|8.5.3 Inclusion of ``IIA Networks´´ of the Member States in the Establishment of MIC Jurisdiction|184
2|8.6 The MIC Statute as Opt-In Convention for the Modification of Existing IIAs|185
3|8.6.1 The Standard Case: Consensus on the Establishment of MIC Jurisdiction|186
3|8.6.2 Exceptional Cases: Jurisdiction of the MIC Even if the Home State of the Investor Is Not an MIC Member?|188
3|8.6.3 Jurisdiction of the MIC in Case of Multilateral IIAs|189
3|8.6.4 Summary of the Establishment of MIC Jurisdiction|189
2|8.7 Transitional Provisions and System Conformity of the MIC|190
2|8.8 Working Language and Language of Proceedings at the MIC|191
2|8.9 Cost Distribution in the New System|192
2|8.10 Overview of the Necessary Agreements and Secondary Instruments|193
2|References|194
1|Chapter 9: Standalone Appeal Mechanism: ``Multilateral Investment Appeals Mechanism´´ (MIAM)|196
2|9.1 Organisational Construction|196
2|9.2 General Procedure|197
2|9.3 Specific Issues|200
3|9.3.1 Duration of Proceedings|200
3|9.3.2 Scope of Examination and Investigative Jurisdiction|200
3|9.3.3 Chamber and Plenary Decisions|202
3|9.3.4 Decision on the Bias of Arbitrators in the Initial Arbitral Proceedings and MIAM|202
3|9.3.5 Precedence Created by Second-Instance Judgments?|203
2|9.4 Decisions Rendered Made by the MIAM|203
2|9.5 Enforcement of MIAM Decisions|204
2|9.6 Possibilities for Setting up a MIAM|205
3|9.6.1 Establishment as a Self-Governing International Organisation|205
3|9.6.2 Necessity of a Minimum Number of Members|206
3|9.6.3 Establishment of MIAM Jurisdiction|207
4|9.6.3.1 Establishment of MIAM Jurisdiction by Explicit Amendment of Existing Treaties and Through IIAs Concluded in the Future|207
4|9.6.3.2 MIAM Statute as an Opt-In Convention to Amend Existing IIAs|208
2|9.7 Transitional Provisions and System Conformity of a MIAM|210
2|9.8 Working and Procedural Language of the MIAM|211
2|9.9 Costs of the New System|212
2|9.10 Overview of Necessary Agreements Etc.|212
2|References|213